4 Actions That Can Lower Your Life Insurance Premiums
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Having bad habits or adverse health conditions can make getting a life insurance quote difficult. Most insurance companies require a medical exam or physical before approving you for a policy. The outcome of your medical screening will determine your eligibility as well as your monthly premium.
If you are aware of certain conditions that may increase your premium, you should consider changing those life habits if possible and treating these conditions before applying for life insurance coverage. That said, there are few actions you can take to try to lower your insurance premium before purchasing your policy.
A smoker always pays a higher premium than a non-smoker. The reason for this is the potential health conditions that can arise from smoking such as an increased risk for heart attack, stroke and lung cancer. These conditions can shorten your life span and cause the insurance company to have to pay your death benefits sooner rather than later. By quitting smoking prior to applying for insurance coverage you may be able to lower your premium. The longer amount of time you live as a non-smoker before applying will determine how much lower your premium will go.
Obese and overweight people typically pay more than those who weigh what is considered a normal weight. A trip to your family doctor can tell you how much weight you need to lose in order to reach the ideal weight for your height.
Once you have reached this goal, you can apply for life insurance and may be able to achieve a lower premium. There are many fast, effective and safe ways to lose weight from eating healthy to working out regularly. Be sure to consult your physician before choosing a diet and exercise routine.
Most insurance companies will offer you multiple ways to pay your premium. You can choose to pay monthly, every six months or yearly. If you pay your premium every six months or yearly, you may pay less than you would have if you paid your premium monthly. This option is only good for those who have the finances to pay the entire premium in one payment.
However, you can save the money throughout the year in order to mail in the yearly payment. Other companies may also offer discounts for paying electronically so be sure to ask about any discounts that may be offered while shopping around for your life insurance policy.
When choosing a life insurance policy, you will be faced with two options. One common type of life insurance that is sold is a whole life policy. These policies typically cost more than a term life policy because they offer additional benefits. With a whole life policy you can save a certain amount of money in an interest bearing tax-free account.
This money may be used for retirement, or anything you want to use it for. A term life policy is different because it provides coverage for a pre-determined amount of time. Additionally, the benefit in most term life policies is the death benefit. With both term and whole life policies, if you die during the term of coverage, the company will pay out your death benefit to the people you list as beneficiaries.
In summary, examine your needs and your life habits and consider both what actions you can take to make yourself healthier, thereby earning the possibility of a lower life insurance premium. Then, explore the options available and select the policy that’s right for you.
Photo courtesy of: Loren Kerns